On October 6, Huawei's overseas X account published the summary of the September 29 International Media Roundtable. Yu Chengdong, executive director of Huawei, director of the Product Investment Review Committee, and chairman of Terminal BG, discussed Huawei's consumer business and HarmonyOS ecosystem with a number of international media reporters. On the topic of rising memory costs, Yu Chengdong admits that the sharp rise in the price of memory components has increased the cost of each phone by more than $200. Since the memory configuration of Huawei phones is higher than that of other phones, the cost has also increased even more. “Overall, this is definitely a huge challenge facing the entire industry. We're seeing many phone manufacturers raise prices. We're increasing prices very slowly because we're trying to cover the costs ourselves so consumers don't have to bear those costs. But let's be honest, our overall profit margins are falling dramatically. Looking ahead, we also have to raise prices. If we lose, our business won't be sustainable, and the company must first survive.” Yu Chengdong also mentioned that after smartphone prices rise, the low-end market will be more pressured, which will push manufacturers to move to the mid-range and high-end markets. “The high-end market is an area where Huawei excels. We are confident that we will continue to participate in the competition amid this rise in smartphone prices, and will continue to provide consumers with better innovative products, experiences, and services.” Yu Chengdong also said that in markets such as Europe, mobile phones are mainly sold through telecom companies. If Huawei wants to sell more phones in some developed countries, it must return to telecom resale channels. This is a possibility that Huawei is considering.
Zhitongcaijing · 2d ago
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On October 6, Huawei's overseas X account published the summary of the September 29 International Media Roundtable. Yu Chengdong, executive director of Huawei, director of the Product Investment Review Committee, and chairman of Terminal BG, discussed Huawei's consumer business and HarmonyOS ecosystem with a number of international media reporters. On the topic of rising memory costs, Yu Chengdong admits that the sharp rise in the price of memory components has increased the cost of each phone by more than $200. Since the memory configuration of Huawei phones is higher than that of other phones, the cost has also increased even more. “Overall, this is definitely a huge challenge facing the entire industry. We're seeing many phone manufacturers raise prices. We're increasing prices very slowly because we're trying to cover the costs ourselves so consumers don't have to bear those costs. But let's be honest, our overall profit margins are falling dramatically. Looking ahead, we also have to raise prices. If we lose, our business won't be sustainable, and the company must first survive.” Yu Chengdong also mentioned that after smartphone prices rise, the low-end market will be more pressured, which will push manufacturers to move to the mid-range and high-end markets. “The high-end market is an area where Huawei excels. We are confident that we will continue to participate in the competition amid this rise in smartphone prices, and will continue to provide consumers with better innovative products, experiences, and services.” Yu Chengdong also said that in markets such as Europe, mobile phones are mainly sold through telecom companies. If Huawei wants to sell more phones in some developed countries, it must return to telecom resale channels. This is a possibility that Huawei is considering.
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